Robinhood Q3 Earnings Takeaways: Stock Falls On Revenue Miss, Weak Guidance, Crypto Transaction Revenue Up 860%

Shares of Robinhood Markets Inc HOOD are trading lower after reporting third-quarter financial results.

What Happened: Robinhood reported third-quarter revenue of $365 million, up 35% year-over-year but shy of analysts’ estimates of $431.3 million.

The company reported a loss of $2.06 per share, missing the Street consensus estimate of a loss of $1.36 per share.

Transaction-based revenue was up 32% year-over-year to $267 million in the third quarter. The company reported cryptocurrency revenue of $51 million, up 860% year-over-year. Equities transaction revenue fell 27% to $50 million.

Monthly active users came in at 18.9 million, up 76% year-over-year.

Robinhood ended the third quarter with 22.4 million funded accounts, up 97% year-over-year. The company recognized an average revenue per user of $65, down 36% year-over-year.

The company noted “crypto activity declined from record highs in the prior quarter.” This led to fewer new funded accounts and lower revenue compared to the second quarter.

Related Link: Robinhood Adds Phone Support: Here's The Details And Why It's Important

What’s Next: Robinhood highlighted several upcoming product launches in its third-quarter financial report.

“This quarter was about developing more products and services for our customers, including crypto wallets,” said Robinhood CEO and co-founder Vlad Tenev. The company has over one million people on its crypto wallets waitlist.

“We believe Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors.”

The company said it's committed to launching tax-advantaged retirement accounts in the future.

Robinhood is guiding for fourth-quarter revenue of $325 million and full-year revenue of “less than $1.8 billion.”

New funded accounts in the fourth quarter are expected to be around 660,000, similar to the third quarter.

HOOFD Price Action: Shares are down 8.2% to $36.30 in after-hours trading.